The State of Financial Literacy in Cambodia

This study investigates the current state of financial literacy in Cambodia, with a specific focus on its influence on personal financial decision-making and broader economic development. In light of Cambodia’s low financial literacy score—only 18% according to the National Financial Inclusion Strategy (2019–2025)—this research addresses the urgent need to understand and improve the financial capabilities of its citizens, especially youth and low-income groups.

A quantitative research design was employed, using a survey distributed to 246 Cambodian citizens through snowball sampling. The survey examined various dimensions of financial literacy, including financial knowledge, economic behaviour, debt attitudes, personality traits, and retirement planning awareness. Results indicate that while respondents demonstrated a strong tendency to save and budget, formal financial education remains scarce, with 60.65% of participants having never received structured instruction. Most respondents rely on informal sources such as YouTube, social media, and family for financial information.

Although budgeting skills are present—81.7% reported knowing how to create a personal budget—awareness of complex financial products such as credit cards, insurance, and investments is notably low. This limited understanding has implications for long-term wealth accumulation and risk management. Risk aversion is prevalent among respondents, with a majority showing reluctance toward taking financial risks, which correlates with low investment activity and a heavy reliance on savings accounts.

Debt is viewed cautiously, with most respondents expressing neutral or uncomfortable attitudes toward borrowing. Nevertheless, some recognize debt as a strategic financial tool depending on the situation. Retirement planning awareness is moderate, but misconceptions persist: nearly half believe planning should begin after age 40, despite evidence supporting the benefits of early planning. Respondents cited low income and a lack of awareness as primary barriers to retirement preparation.

The findings underscore the importance of integrating financial education into school and university curricula. Over 70% of respondents supported formal financial literacy education, particularly at the high school level. The study concludes that while Cambodian citizens are financially cautious and exhibit positive savings behaviour, there is a critical gap in their understanding of long-term financial planning, investment strategies, and effective debt management.

Targeted, accessible, and culturally relevant financial education programs are essential to empower individuals, reduce financial vulnerability, and foster a more resilient national economy.